The 54-year-old former Burnley and Everton boss has replaced Ange Postecoglou after the Australian was sacked on Saturday following just 40 days in charge at the City Ground.

Dyche, a Forest trainee under celebrated manager Brian Clough, becomes the club's third boss this season in what is his first job since the Englishman left Everton at the start of this year.

Former Manchester City and Italy manager Roberto Mancini was reported to have held talks with Forest about the role, while Fulham boss Marco Silva was also linked to the vacancy.

But Forest opted for Dyche, with the club saying in a statement: "A respected and experienced Premier League manager, Dyche brings the perfect blend of character, tactical acumen and proven achievement to guide the club through its next chapter."

Dyche's first game in charge will be Thursday's Europa League tie at home to Porto, with his opening Premier League fixture away to Bournemouth on Sunday.

His coaching staff will include two former Forest players in Ian Woan and Steve Stone.

Postecoglou was sacked just minutes after Saturday's 3-0 loss to Chelsea, making him the shortest-serving permanent manager in Premier League history.

Owner Evangelos Marinakis dismissed the former Spurs boss after no wins from his opening eight games.

Postecoglou was appointed following the exit of Nuno Espirito Santo, who was himself sacked in September following the collapse of his relationship with Marinakis.

Forest are in the Premier League relegation zone with just five points after eight games despite a squad bolstered by over £100 million ($134 million) of investment during the transfer window.